The European Commission has approved €211 million Irish state funding to support television and film production “with Irish and European cultural content”.
The government tax credit scheme is designed to “promote the production of unscripted audiovisual programmes” over the next four years.
Filmmakers will be able to claim back 20 percent of production costs through tax credit for “production expenditures occurring within Ireland”.
The funding should not exceed 16 percent of the total production cost, the European Commission said.
“To be eligible, a production must have a minimum total cost of €250.000 and a minimum eligible expenditure in Ireland of €125.000. A cultural test, designed by the Irish authorities, ensures that the unscripted productions have a strong cultural character and contribute meaningfully to the promotion and expression of Irish or European culture.”
The European Commission concluded that the state funding does not breach EU state aid rules because EU treaties allow for “support [to] culture and heritage conservation under certain conditions”.
Another EU rule, known as the Cinema Communication, also specifically allows for aid that promotes “films and other audiovisual works”.
“The Commission found that the Irish tax credit is in line with the conditions set out in the Cinema Communication, in particular, (i) the measure ensures that the aid is granted to a cultural product; (ii) the aid intensity is limited to 16% of the total cost of production; and (iii) the measure includes cumulation rules to prevent undue distortions of competition.
The Commission also found that the measure is necessary and appropriate to achieve the promotion of culture and cultural diversity. In addition, the Commission found that the measure is proportionate, as it limited to the minimum necessary, and will have a limited impact on competition and trade in the EU. On this basis, the Commission approved the Irish measure under EU State aid rules.”